>> buying tjx. >> great regional bank. >> double up on home depot they crushed it. crushed. >> rvs, tho, bought it today >> good stuff. that's it for us "power lunch" starts now here's what's on the menu. another day, another loss for ge investors. shares down again, at a six year low. is this value or value trap. fresh off interview with the new ceo, carl joins us. the real read on the confusing state of retail. tjx and dick's sporting goods sinking on good numbers. and a shocking stat. nearly half the adults in america have high blood pressure according to new guidelines. this is a real concern or easier way for the pharmaceuticals. "power lunch" starts now

>> welcome to "power lunch." the dow was down, triple digits in the session we cut our losses sharply, a third% s & p down 11 nasdaq down six-tenths%. commodities are taking a hit oil and copper down. natural gas down 2%. brian highlighted ge one name, advanced auto parts, stock the biggest gain, wuchbt biggest. soaring 20%. despite the revenue miss profit beat expectations buffalo wild wings, soaring 25% on a takeover offer from equity. more on that and jack in the box getting -- >> welcome, i am tyler mathisen. begin with a big interview here

on cnbc. ge new ceo, flannery carl >> good afternoon, tyler shares of ge down the second day in a row, on track the worst week since the '09 crisis, 8% today, 40% for the year. john flannery on the job 100 days the board cut that dividend in half, layoffs in boston. and signaled changes come to the portfolio and board. the street is not reacting positively we asked flannery about it this morning. >> right now, why would someone buy the shares now. >> outlook in three to five years, growing cash and earnings over three to five years, that's what someone should buy. is it going to be immediate, going to happen in two months, four months, six months, no.

there are operational things we need to change for the company >> in terms of changes, analyst come tree about what more aggressive steps ge might have taken, including breakup of the portfolio. we asked flannery how close they came to implementing that kind of plan. >> i have looked at, will look at, always will look at every scenario from an an lit cal market backed quantitative way i looked at all of the scenarios and will continue to do that second, big thing that keeps getting lost in this whole context is the strength of the franchises we have an issue on the power business, we have softness in oil and gas market the broad contours of the business have strentd and shouldn't discard those lightly. >> flannery vowed more change at ge, not running it for the reaction monday or tuesday or wednesday of this week in his words but the stock tells the story of the morning, on track for the worst week back to march

of '09 when it lost 17%. >> i wonder, carl, what mr. flannery's anticipation was going into the investor day yesterday and whether he or any of us can really look at the stock's performance the past two days and see it as anything other than a referendum on what mr. flannery's plan is. >> he made the point he has been working on the plan for 100 days because of that, there's some out there in the investment community that maybe were expecting a little more, more aggressive adjustments to the portfolio. in his words, he said two things, one about the dividend cut, how much burden that is knowing how much investors rely on the dividend, how big a disappointment the all sten acquisition. thought there would be a better reaction to the cash flow because of the dividend cut. clearly not happening. >> it is entirely unsatisfying,

the answer why should one buy it now. he said you should buy it for the three to five year story i am not convinced management knows what that three to five year story is, considering they're considering selling off things there are a lot of unknowns still, right how did you feel in terms of how he handled that question body language and maybe something outside of that sound bite. >> the ground they're standing on is very shaky, they were expecting 2.18 now it is half that. are investors willing to believe their forecast for '19 and '20 jim said, a lot of the story has been a leap of faith in jim's words, i'm done with the leap of faith for now. >> carl, thank you we have a news alert on the fed. steve liesman has the headlines. >> thanks so much. saying it is appropriate for

rates to rise gradually in two years. he is one of the newest fed presidents, has a vote next year says the economy is near full employment and demand spike, talking about fiscal stimulus could push the economy beyond capacity he doesn't expect surge in growth or inflation, says tax reform will effect economic activity not sure how much or how gdp over 2% and modest wage growth increase is what he is looking for. confirming muhammad he will-erian considered for fed chair. search has just gun, earbegun. announcement not likely this year, looking for someone with monetary policy expertise. more strength in the regulatory side quick thing, why are we so interested the fed is being remade and made over as we speak

we have a new fed chair nominee who broke with the mold of being academic or ph.d. economist, now looking for who and how the rest of the pieces are filled in with monetary policy. >> do they feel it is a good bench, folks you talk to, is there any concern about powell's lack of economic experience. >> everybody goes to volcker, william tez ee martin. >> he was the longest serving. >> mou i know you know that. how i know that, i don't know. >> guy knows a lot of stuff. >> there are fiscal chairs to the fed. and let's not underplay this deal the president did not reappoint a sitting chair. that was a very big deal and i think he is going to tread carefully knowing that the balance with the market and fed is tenuous and has to make good

appointments that are seen favorably by the markets >> thank you very much back to the markets. despite ge's big drop, it is not impacting the dow. it is now a low priced stock and the dow is price weighted index. goldman, sachs, boeing, united health and apple are dragging us lower. >> hello, tyler. a little derisking going on. look at the sectors. cyclicals, materials, industrials, energy stocks to the down side, defensive names like staples and utilities on the up side. we opened down the last five trading sessions hasn't happened in a long time there's a different tone to the markets in the last week traders cite several issues. everyone agrees we're making progress on tax reform the reality is it is not as great as everyone hoped. people question what the flatter

yield curve would mean we have seen data from china, retail sales and production numbers that notably disappointed we had uncertainty in the middle east that may be a new factor. it all happened in the last week and a half that corresponds to the recent weakness. it is not clear if middle eastern funds were sellers on the turmoil. that's one of the questions for the market the s & p only fractionally off. look at the russell 2000 versus s&p 500, down 1.4% s & p up 2.4% last few weeks that's a big did i ver generals, attributed to the tax bill decline in high yield funds, down 2% for the month. there are tax issues as well it is a proxy for people's willingness to take risk in general. right now, guys, my opinion is so far the weakness in small

caps are not spilling into big cap area, bears watching a lot of people with big gains, sitting on them because there's no advantage to selling now. why not do it in 2018 when you get a tax break. if this deteriorates more, that may trump any big gains from waiting to 2018 to sell. back to you. >> bob pisani, thank you one of the weakest stretches for stocks dow down 1% from recent highs. bill gross chiming in, tweeting confirming last week's call of stock market top central bank liquidity fading. do you next guests agree tyler, first to you. bill gross, more of a bond guy, talks about the stock market saying he thinks the top in u.s. stocks is it do you agree >> no, i think he is wrong he is a bond guy

all due respect. we expect short term pull back earnings season is done. there's a lot of focus on political events going on. geopolitical events, what's going on in congress i think we'll finally see 3% pull back we have been waiting for for so long. end of the day, there's a lot of cash out people are waiting for opportunities to get in the market there's resilience with earnings season 75% of companies beat earnings estimates. we have resilient consumer, holiday season upon us. >> that middle point, sorry to interrupt. is there still cash on the sidelines? we hear that cash levels may be running low because everybody invested money. >> merrill lynch fund manager survey says cash levels are lowest since 2013. >> they were still high. as a money management firm, we have clients that bring money toys and want us to get it invested people are waiting for pull backs for years, right try to get them invested, it is

not the right thing to do. we have a lot of clients, retail investors are sitting on lots of cash in addition to this, if we get some tax stimulus through, specifically in the form of fiscal stimulus or if we can repatriot ate any kind of cash, even a half trillion out of 3 trillion there, we will see buy backs and special dividends come to the market. >> what do you think, what should i do? >> i echo similar comments i find the tweet from bill gross convenient right at the end of earnings season let's not forget how great apple's quarter was just two, three weeks ago, how we were talking about apple x, iphone x being off the chart. i think investors need to have self-discipline, apply that pru dentally with regards to the economy, slow growth for as far as the eyes can see, whether congress

does tax cuts or not you want to stick to companies that can grow. >> a year from now, will the u.s. market be flat? higher higher by double digits? lower. what do you think? >> i think it will be higher, potentially by double digits reminds me of 1996 to 2000 feels like we're getting animal spirits in the market just starting, a president potentially much more favorable to capitalism, but it's only been a year and haven't seen any policy yet, so to get a bubble, whether a tech bubble which i lived through, front cover of baron's or housing bubble, you have to have money chasing returns and i don't sense we had some animal spirits in any area of the economy too much, so i still think we have a pretty good market return year, two year, three years out. >> quickly, thing that worries

you most i know you're optimistic if you had to worry about something, it would be what? >> investors finally realizing that the debt that we are in and the rest of the world is in becomes a real threat. it is a threat, but we have to wait until markets realize it is a threat. >> worried about sitting on a desk with another guy in a tie >> why does this happen? >> it is great though. >> you were good for your generation don't see too many tylers of your generation. >> popular name now. >> don't suck up to tyler mathisen he has enough going on tyler, vernon, thanks for the last appearance on cnbc. guys, thank you very much. >> thank you new details about the gop tax plan emerging. working at this .24, 7 on this story. >> republican senators are considering including repeal of the individual mandate in an updated version of the tax plan

that's slated for release later today, according to a source close to the discussion. now already today, republican leadership has come under pressure from senator rand paul urging them to include this provision in the tax bill. obviously president trump we saw from the tweet yesterday is also behind this, so we will see if this ends up in the final version of the tax bill. on the house side, house leadership had considered adding it as well they had eventually discarded that idea. today, house speaker paul ryan said they're going to go with the bill they have for the floor vote this week, but on the senate side this is under active consideration. back to you. >> thank you coming up. story may get your blood pressure going a change to guidelines, means more of us are categorized as having high blood. next, the doctor will tell us how concerned we really should be

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a shocking stat on the health of america. half the u.s. adults are considered to have high blood pressure under new guidelines just released. according to american heart association and american college of cardiology, anything higher than 130/80 would be high blood pressure americans need to change life sometimes or take medication to treat it

dr., thanks for joining us >> thank you >> how has this changed or how will this change the way you treat a patient now that cutoff is lower >> i think this has been long time coming. many of us thought it should have been done a couple years ago. as you mention, roughly half the american population will have high blood pressure. another 40 million coming in formation or life-style changes. the recommendations recommend life-style changes first, which are important. then recommend medication if it can't be achieved 130/80 or less. >> what is the biggest life-style contributor to high blood pressure >> there's a few weight, excessive sodium intakes, excessive alcohol intake, lack of activity those four add up. most people that are overweight aren't active, eat too much

sodium, some taking in too much alcohol, and they all add up eventually it catches up with you. >> doctor, i will be cynical here, i apologize. >> that's all right. >> listen, high blood pressure is not a good thing, we want to lower it we know the american public has been aware that being overweight or obese is unhealthy for decades. this is not breaking news. why do you think it took so long to reduce the standards and i'm sorry to say, is there any part of you that does worry when guidelines are lowered, often times by consultants to pharmaceutical companies, there's economic agenda in making people unhealthy by lowering a guideline so more medication is sold >> it is not that cynical an approach i am sure that contributed some. personally for me, no, but i think maybe it will emphasize life-style changes a bit more.

the other thing to remember, most people with mild blood pressure elevations can be controlled on once a day, one or two medications, most of which are generic and aren't costly, maybe $4 a month at most so i think there's some push from the pharmaceutical industry, obviously they're salivating at this point but i think reemphasize as far as why it took so long, there's been in the last year or two, there's been a number of large clinical trials that looked at this new guideline, new level of blood pressure and shown that it is beneficial to get people lower, so i think that's what we were waiting for. >> forgive me for interrupting what does high blood pressure do to you, number one, and can the damage it does be reversed if you get it lower >> so it does lead to leading cause of heart disease, stroke, end stage, meaning dialysis.

it can reduce risk of that, with good life-style changes and medication can partially reverse some of it but the real emphasis is to get it early so you don't develop these diseases and problems before you reach those end points >> doctor, thanks for joining us, appreciate your time. >> you're welcome. >> dr. allen naftilan. and earnings reports from retailers, if you own tjx and dick's, both falling as a result of that. we talk retail coming up if you want to bet on the consumer this season, don't want to buy traditional retailers, we have a sector for you. we'll explain next on "power lunch. erica. erica. small businesses show their love to you. with some friendly advice, a genuine smile and a warm welcome they make your town... well, your town. that's why american express is proud to be the founding partner

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for life-long, healthy living. honey? you almost done? nope. get ready, because we're helping leading companies see it- and see it through-with digital. time for some hard truths. friends buy sweaters for christmas. real friends and family by stocks but you don't want to buy at discount, but if you do, look at the travel stocks. landon dowdy with more >> i hope you're on the nice list or have friends or something. here are some stocks the consumer discretionary sector had an average run, up

14% so far still lagging. overall s&p 500 up 15%, and 10% of the companies in the sector are in the travel business, always at the top of mind in the holiday season, whether it means going on a cruise, going to see grandma. it turns out if history is any indication, investors think travel stocks as well. you're probably scratching your head since stocks have gotten killed the past three months in the past five years, hotels, travel sites and cruise line stocks soar in q4 compared to s & p. royal caribbean, trading positive 100% of the time. carnival posts average return of 11%. marriott international 9%. these compared to s & p with 4.5% returns on average. patrick scholes of sun trust telling me there's no one definitive answer why stocks take flight.

q4 is when they provide guidance, and vice president be - haven't been disappointing four year outlooks have price tarkts going up, creating greater tendency to buy the stock. back to you. >> thank you. home depot shares higher after the company reports a raise on earnings. is it one retail stock you can bank on. nascar's top four drivers battle this weekend. before that, they jo uins in studio "power lunch" will be right back

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than we could ever go alone. sofi. get there sooner. h hello, i am sue herrera. jeff sessions strongly defended himself before the house judiciary committee. sessions denying allegations he mislead members of congress about his knowledge of communications between the russians and associates of donald trump during the 2016

campaign >> in all of my testimony i can only do my best to answer your questions as i understand them and to the best of my memory but i will not accept and reject accusations that i have ever lied that is a lie. >> the be league urd u.s. postal service reporting financial loss for the 11th straight year, citing declining mail volume and pension obligations. it reported loss for the fiscal year, despite double digit increase in package delivery. three ucla basketball players detained in china on suspicion of shoplifting are on a plane back to california the rest of the team that played georgia tech in shanghai friday returned to los angeles saturday. you're up to date. brian, back to you >> sue, thank you very much. let's check on major markets and your money

not a big down day major averages are cutting losses a built dow down as much as 168 points earlier. it is now down 60 points we have come back up utilities and other sectors are the ones on the move consumer staples, better performing, energy telecom, biggest losses otherwise, a good couple days. >> big day for retail earnings home depot is slightly higher, tjs, dick's, falling why the stocks are moving the way they are. >> mixed bag for retail earnings ahead of black friday. start with home depot. another strong quarter still strong housing market and hurricane related spending, fueling the retailer to beat expectations for earnings, revenue, blow past consensus for comparable sales strong numbers there upping profit and sales for the year saying it might be conservative based on the first two weeks of november. volume of transactions and receipt totals are higher, makes

it 20% of sales, that was 12% higher over a year tjx, parent company of t.j. maxx, marshalls, home goods, this time they beat on profit but sales were disappointing they posted first negative since first quarter 2009 warmer fall weather is to blame. dick's sporting goods, the company vests in e-commerce for payroll and keep prices low for shoppers he thinks it is the right thing to do despite short term pain for dick's target reports tomorrow morning. courtney has an exclusive with the ceo, brian cornell, 10:00 a.m. eastern on cnbc let's do a deeper dive into retail ahead of the holiday shopping season. michael lahser joins us.

>> good to be here. >> talk about the three stocks that courtney highlighted. i want to begin with dick's. you have a buy rating, target of $29 a share. how do you square that with the idea the company says profits will be 20% lower. >> sure. the symptom is cheap, making investments in its business. eventually all of the issues that are weighing on the athletic apparel and footwear space will eventually work out until then, it will be painful we think it will take time dick's indicated earnings would be down another 20% next year. it is making really offensive moves to deal with the environment. >> let's talk about the other two, tjx, home depot give us thumb nails on those.

>> home depot is doing great good sector of retail now. home depot is exercising all of its muscle, all of its influence in the sector, growing in stores, growing online, growing from the hurricanes, outside the hurricanes biggest push back, it is not cheap. it can continue to float higher with earnings growth there's question do they take opportunity to talk about investments to make in the business our view is the way you differentiate retail now is there are certain retailers that are investing, and deferring, and others just to stay flat. >> when you say it is not cheap, what metric are you using? should we be looking at pe or looking at pick rates, price

earnings growth. >> it trades 20 times earnings, 12 times relative to growth, you're absolutely right. its valuation still looks very reasonable it should grow earnings low to mid double digits, low to mid teens the next few years, assuming the cycle stays status quo. think it is a reasonable valuation relative to where it is today. >> if amazon came out and said we're going to home improvement, very hard. what could the fallout be on home depot >> two things. one perception of what fallout would be, there would be immediate stock price response saw it when amazon announced they would carry ken more appliances stock down 5%, only to subsequently recover all of it what's the impact to stores. this is an industry that sells goods that have i am immediacy, something breaks or there's a tactile element. >> at the same time, home depot

online sales are up 19%. doesn't that show that the online homism prochlt retail segment could be vibrant, therefore n transby an amazon could be threatening to that 19%? >> there's two interesting stats along with retail sales. number one, 45% of home depot's online sales are picked up in store. the other interesting stat is that 85% of returns are done in store. it shows the interconnectiveness between scores and online. the consumer values that experience to be interaction with both. >> michael, thank you very much. appreciate your time to the bond market rick is tracking all of the action at the cme. >> good morning. actually, good afternoon if you think back to 8:30 eastern wholesale ppi numbers, you would never guess that at the end of the session as we get close to the end, rates have given up, especially on the long

end. maybe even more interesting, looking at tens minus twos three basis points flattened today alone, and resuming what it had been doing quite some time, 30s to 5s. never stop you look at one week chart of that same spread, pay attention. not saying it means we have a recession or means the economy will slow down, but if investors are uncomfortable with what it may mean, it is almost the same thing. finally, the star of the day, euro versus the dollar it is flying toying with 118. you open to 23rd of october, we're at a three week high on closing basis of the euro against the green back that's rather significant considering the french seem to be doing better at reform than our tax policy maybe this is one time where politics is making a difference in the marketplace brian, back to you >> thank you very much hate to interrupt the discussion we have a tease to do.

in six days, new nascar champion will be crowned. will it be the jersey boy himself, getting his first title, or one of these brad kes loy ski, kevin harvick, kyle busch, in-house to talk about this, the big race what it means to be a champion back after this.

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and, how's it looking? >>i don't know. there's so many opinions out there, it's hard to make sense of it all. well, victor, do you have something for him? >>check this out. td ameritrade aggregates thousands of earnings estimates into a single data point. that way you can keep your eyes on the big picture. >>huh. feel better? >>much better. yeah, me too. wow, you really did a number on this thing. >>sorry about that. that's alright. i got a box of 'em. thousands of opinions. one estimate. the earnings tool from td ameritrade. new developments in the long, on-going contract negotiation between national football league and its commissioner, roger goodell. scott wapner reporting it is not just the cowboys owner jerry jones that's upset about the current deal on the table. scott is here with the latest. >> this has been portrayed as jerry jones versus the other owners and the commissioner himself about his new contract extension. i'm told from sources that more than half, more than half of nfl

owners also do not want to rush into the extension with roger goodell, which is said to be asking for $50 million a year, 49.5 million, with lifetime use of a private jet that for a variety of reasons the owners just don't think they need to rush into anything mr. goodell is under contract through next year. there's a new harris poll out today that shows that 60% of voters disagree with mr. goodell's handling of the anthem issue, and that his job approval rating is at 50%. and that giving an extension now, especially with that kind of money on the table would be a pr disaster for a league already hit by decline in ratings and grumbling from some of the league's sponsors. i am told owners would rather wait, at least half would rather wait until ownership meetings later in the year, or more meetings that take place early next year before deciding on the

pay package for roger goodell. let's make one thing clear this is not about being unhappy with roger goodell as commissioner in terms of wanting to fire roger goodell, wanting to find somebody else to run the nfl. this is simply about the timing of this deal given all of the noise out there around the nfl, sponsors like papa john's who have come out recently, complained about drop off in business because of the anthem issue, drop in ratings which have been cited in a number of places guys, this is simply about why rush and it would be tone deaf is how it was portrayed to me to do this right now. but it is far, i am told, from just jerry jones >> he is under contract through 2018 indeed, what is the rush the last thing i read before i went to bed last night was that

the core kensecommittee, they we telling jerry to back off. we got this. >> i'm told from good sources this is not just jerry jones that says let's put the brakes that more than half, that's how it was put to me it could be higher than that >> that's a lot. >> that say let's wait why are we rushing do you realize what would happen publicly if we did this now. i can understand why roger goodell would want to renegotiate his deal now, if in fact he is the one pushing for the extension now, given everything out there if he sees any part of this slipping away, which is an incredibly lucrative job that he has, you could see why he would perhaps want to get something done sooner rather than later. >> i understand he would like to extend his contract now, to lock that in. but based on what he is asking

for, it seems to indicate that he has sort of the upper hand, like he is in position to ask for more things, such as use of a private jet for life, when more than half the owners, it sounds like they may not want him after 2018 or even sooner. >> look, i think given the pr issues that are out there, i think the owners think that we can weather some of the pr stuff that's been around the league. if roger goodell had not been doing a good job from a business standpoint, we would be having another conversation all together the fact of the matter is he has done a good job, lucrative contracts. players are making a lot of money. owners making a lot of money franchise rights, values going through the roof that's why this is not in any way a -- well, we're unhappy with roger goodell, let's find somebody else. this is simply why rush. >> wait until april.

>> brian. thank you. stick with the football metaphor some call it the super bowl of car racing we are joined by the final four for the title. after complicated points system, it is all simple on sunday first of these guys to cross the line first not wanting to race wins the title, millions of dollars, probably an upgrade on their own private jet. never get nervous for interviews, i am now i have been watching you forever. bit of a fan boy first and foremost, martin, how is your girlfriend doing she has been in a battle with cancer. >> thanks for asking, she's doing great. >> thoughts and prayers with you and the family moving on to the title, you three won one.

you're the favorite, i am biase in the interview, what does it mean, kyle, when you win the title. how does your life change? >> the pressure you put on since you were a little kid to being able to achieve that goal, it changes your life. you feel like you accomplished a lifetime goal. it changes your life now you have that champion's embark of what you are in the sport, being able to go everywhere around the sport, people call you champ or whatever, being in different interviews, you called me champion today, it feels good. it is extra special to have. would love to get number two. >> you get to get on cnbc, it is a big money sport. what does it mean financially when you win the title obviously you make money from winning the title, probably won a few races during the year. crew i hope gets paid. they get bonuses what does it mean financially, how does it change your life >> financially, really any of the professional sports now, we're fortunate to make a good

living hard to discuss that to the public because when you look at race car drivers, some might agree, we would say we're athletes that means we have time span in our life to make the money we're going to make the rest of our lives. when you win a championship, it really feels great, you know you're going to be financially secure after you're done driving. >> it is amazing to say that by the way, you are athletes it is hot and stressful. it is hard what you do it is amazing, kyle. you're the baby of the group at 32 you're the youngest, 33. >> i haven't thought about that. >> you look at matt kenseth, may get to ride, danica patrick, late 30s, becoming a young man's game you're not the babes any more, leaving you aside.

how much does experience matter? how are you able to do it at 41, beat the 21-year-olds? >> that didn't used to be the norm you saw dale earnhardt, mark martin was 53. >> won five races in his 50s. >> there's value to experience and things you've done in your career, in the car, going to the same race track over and over and over it is not like the nfl and major league baseball, you're 100% dependent on your body, i am very slow and uncoordinated. it is one of those situations where i think experience does play a factor in things that you bring to the team and the guidance of the organization and the direction that you push things there's definitely a value on experience. >> martin, what changed for you. you are in many ways an anomaly. you're a jersey guy. you're a team based in denver when every other team is 10 or 15 mile radius in north carolina this year, it has been an

incredible year. what changed this year >> i don't think this year is that different than last year as far as performance on track but results and numbers are way better last year we had a lot of close calls, a lot of things go our way at times >> bad luck. >> had times. it is bad luck absolutely that's apart of racing, right? you can see the ups and downs. for us, this team, we have been together four years, we are young adults story and here we are, it is crazy how much it chha changed for us in two or three years. somebody told me once that car racings have turn money into noise. money is the fuel with all due respect. >> yeah. >> when or if you win the championship, does that solidify your shponsorships? >> it is a cruel game now, you

see cars with different games every week >> it is about performance we are solid through next year but we'll make 2019 a whole lot easier >> we are in a portion of position where we got bush and mobile one and jimmy john's all in the car jimmy himself will be at the race this weekend and has toll told me this personally, i want to go to homestead with a chance to win with my name on it. >> it takes a million dollars a race to run these cars >> a million dollars a race? >> you have to raise a good amount of financial capitals to raise these cars you got ford and toyota and 400 companies to make the wheels go

around you can see success to them that solidify your future >> second and third, they get paid out pretty nicely kyle, would you see it all winner take all financially? >> absolutely, we built the struck you are where it means more to win the race so it means more to win the championship i have been a great partner with m&m's and ten years, we have got a strong future. it is been fun and looking forward to have a great race on sunday >> good luck to all of y'all and be safe. good luck to you martin as well and a special shout out to se e sherry, as well. thank you. the national championship nbc this sunday. dale earnhardt jr. , final race at least on the big stage. i normally don't watch that but after the interview, i am watching >> a million dollars a week.

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"street talk" that y," stoct

you need to know about coca-cola is under estimating several complaints margin expansion opportunities price starting goes to 51. >> stock number two is dollar tree $160 target. the analysts say dollar tree is less vulnerable online given that they got so many easy to get to locations they also quote dollar tree an under appreciated free cash flow story. they stop the sale rating on super value, the grocery store chain, distributors saying evaluations margin is unstainable. >> the analysts pointed out hotter competition on apparel. the stockstill has a unique

evaluation all right, your final stock is night transportation, knx. upgrading for transportation, expanding at $45 they found that assuag wages ri, shipment rise. all right, tyler >> ge shares plunging again, six years lows, is the new ceo making the right moves to turn around the company and home builders averaging 20% so far and 2017. what's ahead for 2018. the u.s. is losing its billionaire crown to asia. >> the second hour of "power" is very shortly

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in drug stores nationwide. prevagen. the name to remember. welcome to the second hour of "power lunch. another down day of general electric the stock is now 30% is ceo flannity making the right

move pretty picture, picasso and leonardo da vinci is up tonight. it could hit $125 million combined we got all the details "power lunch" starts now melissa is such a pro. it says in the prompter, it was a da vince. lets get a check on the market >> i got a da havvince, i paid $100 million >> right now it is down 54 points i can tell you that. ge, the worst performer of the dow right now down about 12%

this week, on flip side, advance autoparks leading the s&p 500 right now. the move is giving a lift to competitors like autozone and h o'ly >> i got a da vince. [ laughter ] >> moody just out minutes ago with a new report detailing the state of automobile finance and the industry looking increasingly trouble as loser loan standards the last couple of years mixing in the auto joining us to break down the numbers and first on cnbc, will black, to author of the report release publicly two-minute ago, will, thank you very much for joining us on short notice >> my pleasure >> how big is the syndicated and structure finance market for the automobile industry? >> well, the autoindustry is

about $1.1 trillion large, worth of auto loans outstanding today, that's the biggest it has ever been and the volume that is financed through the security market is approximately 14%. that's down from about 20% prior to the credit crisis so the rule of securitization has decreased some what but still quite important and it is more important for some in the industry than others >> you see we are still talking about roughly $150 billion that's syndicated out there. when i am looking at the report, we are talking about negative outlooks and shipments are down and in parts of uber and rental agenci agency is not buying as many as as -- do you see it continuing to get worst when we get to that

point? >> right, just to remember this is a secular business. we are in the longest economic cycle in modern times. we have been talking about signs of the cycle of risk taking credit going on of the credit side we do expect sales as you pointed out at the top of the hour, the sales are expected to be down about 3% here in the u.s. and in 2018 coming down off of a high of two years ago and down to about 16.8 million on a adjusted basis so. the signs are there that we maybe approaching an inflection point of the marketplace for autos. >> as gas prices are going down, americans do what they do which is they buy larger vehicles, more suvs and trucks and more

expensive which meaning they are borrowing more money is there risks where we see gas prices going up. the loan market, the part that you are talking about will suffer greater losses because all these big vehicles, people have bought simply will not be worth a lot of the debt that's still on >> well, look, gas prices factor in heavily in reacsidual values. we have seen it in the past when gas prices hiked and it depends on how quickly and severely gas prices move as to what implications it has on used car and how quickly people can change over to suv and economical cars.

in the short term, that's going to take more money to operate your vehicle and taking more money out of disposal income used to repay autoloans or any kind of consumer debt. will black, appreciate your time it is day two of the ge slide. it is really been more of the two days as the street reacting to the ceo, john flannery. worst day since 2009 cnbc spoke with the ceo this morning, and he says he's focused on the future. >> what i am doing to fix them, that's my perspective and that's where i am right now and that's going forward and that's what you would expect of me i think we would be quite clear

of where we under perform and how we fix it. so going back to the past is not productive for me, i am focused ongoing forward. >> we have reinvented ourselves many, many times we are in the process again, constantly leveraging our company and moving in different directions people who want an exciting new directi direction, i will recruit anybody and talk to anybody. people are going to have to want the battle and want to move the company forward. people want an easy task and i don't want too much challenge, that's not for us and it is not for them >> joining us now is work professor, and mike santoli. professor, lets talk about the leadership and change. how would you grade mr.

flannery's plan to the extend that you can grade it at this point and is it easier for an outsider unlike mr. flannery to lead what must be a wrenching change >> yesterday, his announcement is a big deal, it is a long time coming and he's taking it to the next level the market reacting to his statement is more of the challenges he faces than he fails so far he's only been in office for a few months the remake that's coming is going to be historic, it is a big, big deal. it is his to make or his to fail at making. his work is going to be extremely difficult, it will take a couple of years before we know from other remakes, and think of the ibm remake a few years ago of tough minor executive in charge, you can do

it the betting is probably going to be on flannery doing it. in some respects, he got an easier time. but, frankly, i don't think it matters so much as whether he's got the courage and the determination to see it through. lets hope he does. >> mike santoli, the stock has not reacted favorably or either there are funds that's kicking out because dividends cannot hold one who knows? it seems to me as i look at the history of general electric which used to own cnbc and cnbc universal so we are familiar with that. each ceo successfully whether it is welch and now mr. flannery have undone its predecessor. fair >> it is fair.

it is a function largely of the hand that was dealt to that new ceo. i think jeff came in and the stock was at a high and entering or just about into a recession we had a lot of things that's not going in his favor so i do think it is fair to look at flannery as trying to go back and if not undo severe adjustments to the way the company has been running the last 15 years. the market response tells you that the downgrade profit expectations that flannery announced was a little bit for the street to prepare for. i think when he talks about patients in terms of three to five years plan, the street here, dead money or we are going to have to get some pain before the gain, so this is a liquidation process that some

investors don't want to stick around >> you said earlier that the real trick is the courage of mr. flannery's conviction. does he have the stamina to do the hard things that this kind of turnaround will take. how much harder will it become when you realize it is going to be exiting businesses and everybody, therefore, is going to be drive you down on the price that they're willing to pay for those businesses that you are leaving. >> yeah, you know, john flannery got a tough road here. a remake of this scale and this is what jeff and jack welch and his predecessor did. he was the guy that preceded jack welch >> right >> that's like turning into battleship that's going to take some serious time and many investors, not all, many

investors don't have that kind of time frame and having said that, the big holder at stock and ge are investing in company like vanguard and the people running black rock, they have been saying a couple of years now, we need more long-term patient capitals and they're going to hang in there and stay the course as scantrjohn execut historic remake and it will take a couple of years inherently and others are exiting the stocks. another major holder of wells fargo and other major holders to keep them in the stock while he exercise the story remake and for that, the strategy story is going to be essential. >> mike santoli, it is harder to keep the funds out of the stock.

i read some comments attributed to david blitzer, in general, they don't like the ratio being more than 10-1 you got boeing trading 260 bucks. that ratio is blowing out of the water. >> yes, that ratio is out of whack in terms of those components $30 stock and $18 stock did not used to be that big of a deal so i think that my read is kicking out ge -- larger than p at least a quarter of other dow company in there i don't think they'll be looking for an excuse to kick ge out right now. yes, there is something about it >> mike and mike thank you very much. >> thank you, coming up on

"power lunch." hospitals and infrastructure and affordable housing can get hit by the new tax bill. housing is a hot investment this year of 21%. will the rally continue in 2018. your play book ahead >> and one of thmoe st beaten down retail stocks out there all that and more, coming up on "power lunch." throughout my career, i've been fortunate enough to travel to many interesting places. i've always wanted to create those experiences for others.

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olick has that story >> hi ty, the house tax bill could wipe it out. i am talking about private activity bonds these bonds financing building like this, low income buildings that the community desperately need these public private partnerships finance more than half the development of low income rental housing and hospitals andinfrastructure. the bond is tied to low income housing and tax credits which also promotes developments but tough to get without the bond. >> devastation deduction if you cut that type of financing from the few programs that really exist out there to help people and help the government and help our communities build affordable

housing. >> reporter: losing these bonds could reduce the supply of affordable housing by 1 million units. this as the supply of low price home for sale is at a record low. back to you guys >> thank you diane coming up tomorrow, paul ryan will join "sqauwk box," it is an interview that you cannot afford to miss. it is a strong rise for home builders >> bob, it is always good to see you. >> thanks. >> i want to start off first with the potential impact on any sort of tax reform we saw details of the plan coming out, we saw mortgage interest detuductions getting half the higher in home builders had

a bigger impact than the lower end home builders? what could it be in your view? >> i think it is early and pr a premature to make a call if they cut a deduction o f a modest tail going into next year >> you need a pull forward demand >> not necessary it is not a good thing, it is a modest shock in the system is this deal done? absolutely not there is a long way to go. this can be rolled back. something to watch but not something to fear. >> in terms of your trend for 2018, repair and remodel is an over weight. for 2017, you would have thought, oh, hurricaneses, that's that's a no brainer. >> literally, we see positive fundamentals across the water fronts and we are excited of what we see. the question you have to ask is

investors, we had a big move and it is an awesome year in the market does it continue and does the party continue our answer is absolutely why? renters are becoming buyers and number two, home prices will rally. we look for 5% growth in home prices and strong dezmamand and high affordability >> it will propel stocks higher. this year has been about multiple expansions of 2017 and 2018 about sustained earnings growth this big rally and home price is great for companies like home depot and great for companies that sells home depot. >> i am going to ask a question for a friend, lets say you are a guy who lives suburban new jersey relatively affluent suburbs, houses are going up and taxes are very high. what do you expect tax law is

going to mean for that person who's again a friend of mine >> what is it going to mean for that person? for his or her house value and broadly for the value of homes that are being built and sold in new jersey and new york and california >> i can go on and on. it is detrimental. by the same time, you have tremendous jobs growth and the economy is in great shape and we'll press 3% growth in 2018. yes, are there some questions that are unanswered? >> are there potential head winds? that's not done yet. lets see what happens. >> follow up on my friend. >> hello friend. >> the home renovation trend because if they maybe cap the mortgage deduction interest rates are already going up and do you think fewer people are going to move because they either don't and all this stuff is being grandfathered in.

you are going to say i am going to stay in my current house and lets add a new wing a new room because i cannot afford to move. >> to get a bigger loan. >> i am going to build >> and pay higher taxes. >> i would put it this way we think you have powerful tails going into next year and there is a lot of cross currents legislatively related to tax right now i want to ride the wave we are in the fifth inning of the house recovery which has legs it will persist even if interest rates start to rise. the demand is that strong. it is worth for investors in 2017 it will also work for 2018 >> bob, good to see you. we just showed your two top ideas for 2018 >> exactly >> buffalo wild wings taking off

today as private equity from work, capital makes a take over offer. here is the question are restaurants the hot new things for private equity? >> plus, tpeepr's new position he's not selling, he's buying. we'll be back with more after this

hello everybody, i am sue herrera, here is your cnbc update at this hour. president trump is talking to reporters about air force one on the way back from the philippines. he said trades is going to change, not just with the indo pacific region but the whole world. >> we have to have reciprocal trade. what's good for them is good for us a cargo spacecraft loaded with 7,400 pounds of supplies arriving at the station. a solar communication antenna used for sending messages.

heavy rain brought into washington most of them made it across. there you go look at that little guy. no word on why they crossed the road, however. >> that's the news update. >> why did the fish crossed? road >> we don't know >> they were looking for little fin. >> there you go. >> thanks, guys. i think i am tossing it to break, "power lunch" is back in two. not rebalancing your portfolio. focused on what you love, not how your money will last through retirement. we make it easier to plan for retirement with day one target date funds from prudential. look forward to your 401k plan.

lets get to jackie deangelis today. >> hey melissa >> it is very much a supply picture when it comes to the crude story, opec cuts u.s. production and they all matter demands matter, too. add to that, iea, increasing

slowly in the coming months. the concern is the first half of next year we could revert back to a surplus status. ahead of the november 30th, opec meeting, they're proceeding with cautions in this trade, guys >> thank you very much shares of buffalo wild wings soaring today after they received a buy off offer from a private equity why equities are so interested in restaurants >> so consumer oriented companies have been a staple in private equity firms retailers have been a thorn in the row. a lot of sponsors are avoiding that space all together. for exposure to consumers, they see opportunities in restaurants according to sources in the pe world. restaurants are not as impacted by e-commerce disruption and has

not been harmful to return in 18 years. 18 restaurants have been bought out on pace to beat or match 2016 levels. buffalo wild swings stock plummeted the company is also in ceo since the current one, salley smith, plans to retire after losing a contract against marcado year ago this year those conditions make buffalo wild wings a right market. the question is whether or not they want to sell. >> it is >> tepper is out, what is he buying or selling? >> some interesting thing to distill from these filings the financial sector, he decreased a state in bank of america and dissolves.

you can see when you look at the stock, that trade is certainly paid off for him his airline trades were notable selling out of delta and beefing off his exposure to southwest airlines during the last quarter ended in june, he took several positions including of activision bashar al-assad -- blizzard today, he trade od out of those three names. these closures are at the end of september and tepper's portfolio looks different than what was filed today. lesley picker. thank you. >> we are seeing a tale of two retailers of walmart surging 30% this year and macy's is falling 45%. joining us with barry james with

advantage funds. gentlemen, welcome to have you here what do you see in either of these two stocks attract you or repel you? >> what i see are companies taking on the challenge head on and they are cheap macy's is trading less than half of its value by a number of different methods enterprise values and the values of their real estate. it has a pe that's less than its dividend yield it is using about half of its earnings to pay the dividend yields the buy pack chair and paying debt they are restructuring and they got this backstage of an outlet kind of things and improving their inventory management and doing a lot of closing of stores as well. i think they're going to survive and they got the financial of

where to make it do you think a dividend at a yield of 8% is save? you say they're paying it company comfortably now. >> i think so. they're not going gang buster, but if you are paying 52% of your earnings, you can support a dividend yield of that measure >> burns, do you have a view on macy's, number one, i know you continue to like walmart even after its very nice run. >> that's right. with respect to macy's, if you are looking to buy something for the value of its real estate, it does offer some of what is a floor. if you are trying to buy a name for what it can do as far as producing cash flow is a growing concern. we do worry in the case of macy's, they have closed a lot of stores. it seems that they have to close a greater number of stores to

reach previous levels of proficiency on square foot walmart is one of the leaders with respect to really addressing the threat of amazon, they had to pay a lot to build up and improve the store experience and compete with amazon store's sales are up about 12 quarters they brought in the right people toll address the online presence we do have a lot of cautiousness on retails if you look at it again, the two tales between walmart and macy's, that drives home the value of market management >> let me go back to barry, one of your pick, is diamond offshore, what do you see there apart from i know you are partially to the lowe's family james tish and his ability to

invest and turning things around >> it is relatively cheap and earnings have been okay and everyone the price have not been running a whole lot this year, we are starting to see the bottom out and reversing th they're all over the globe obviously with their oceanic drilling and platform that they set up we see oil is not likely to go a lot lower from this standpoint and also, one of the things we like and if we see trouble in the stock market which we do, energy is a better place to go and this might be one that does not match what the market do >> burns, final question to you and if you can be brief. you have an interesting cluster of companies, mortgage stanley and doctor pepper and snapples and kansas city, that's what they say you like, they don't seem to have anything in common of each other, is there a theme? there is one nematodtheme. most of these companies are like

a walmart since 1974, lam research grew their dividends die 50%. if there is really a theme, they have been growing their dividends at aggressive pace which is something that we like to look forward. >> burns mckinney appreciate it. >> barry james >> appreciate it >> talk about bling. a rare diamond, we'll tell you how much it is expected for fetch. i used to love golf. wait, what, what happened? i was having a good round, and then my friend, sheila, right as i was stepping into the tee box mentioned a tip a pro gave her. no. yep. did it help? it completely ruined my game. well, the truth is, that advice was never meant for you. i like you. you want to show me your swing? it's too soon. get advice that's right for you. investment management services from td ameritrade.

time now for our run down. robert, the u.s. is leading the way there. is robert there? where is robert? >> i am in >> well, here he is. >> holdup.

>> like leonardo da vinci's, all great things take time to make we are just taking our time to make this segment great. >> i didn't know where you ere i thought you were some where else but you are right here. >> i am right here >> there is a lot more millionaires, robert >> yes, 2.3 million millionaires in the world there are 36 millionaires in the world about the same population as canada. asia has more millionaires in tust the u.s. has about half. the top 1% of the world has half of the world's wealth. >> our topic number two. there is a big diamond auction in geneva today. >> oh, i am missing it [ laughter ] >> it is going on right now. chrissy is about to auction off the largest white diamond. it is not a miss print

163.4 carat. you can have it as a necklace or bracelet tomorrow, as if that's not enough big bling sotheby's selling the rare 37 carat pink diamond that's also selling for $30 million. >> and picasso, $1.6 billion art is being sold. leonardo da vinci's is the big one tomorrow >> a lot of great monets and a picasso. that's woman who has a hat >> good french 18 to $25 million. >> so we are off to the race as the art market is back i suspect that leonardo is going to crush it well over $100 million >> when you give that prediction because we are closer to record highs in the stock market.

what are some of the prices? >> in the world. >> the number of people who have lined up -- around the world to see this thousands of people lined up to see this somebody is going to bid a lot of money >> leonardo da vinci never paint it he was lazy clearly but -- >> the ones he did christie has a great people reacting to people seeing it they did not know they are being filmed it is an incredible piece. it is good in person [ laughter ] >> robert, thank you >> in the block, leonardo da vinci building jesus christ, it could sell upwards $1 million. >> cnbc's contributor walter

irish is joining us now. welcome back to the show >> radiate to see you melissa. >> every painting by the leonardo da vinci has a great history. it took them 16 years to do the mona lisa. >> you see the same mysterious smile, the smile with layer and layer of glazed paint with an obstacle illusion that makes the details turn downward slightly when the shadows is turning upward the blessed hand of jesus being very sharp, as it is coming out of the panel leonardo is combining his scientific knowledge with his spiritual awareness and his artistic ability for this painting and that's why i think it is such a frenzy.

>> the only reason i knew that because of walter's book i am quotiing walter back to walter [ laughter ] >> we spoke about it on "morning joe. this painting has been extensively reworked and restored, has it not does that reduce the value at all? >> i guess we can ask robert for a better question than that. >> yes, it was over painted and it had been lost, the walnut panel had split-t facial hair had been painted over it so yes, that's the type of thing any artists would have to consider i think the restorations having seen it now is a good tavar restoration. this painting as you well know is a center of the biggest art scandal in the past five years we had a french art dealer who

bought this for $80 million for $127 million russian so it is worth some where between 80 and 127 the seller -- does all of that scandal and question and fraud, does any of that had an impact on the value and what will happen of this painting. >> ten years from now or 100 years from now, people are not going to remember exactly what russians allhave bought it i think we appreciate it for being a moving work of heart i hope somebody who buys it will

put it on permanent display this the museum there is only one leonardo da vinci on display and that's at the national gallery anybody who loves their local museum and if you are in new yorker and you love the mets, $125 million and $150 million, a lot of money but considering there are fewer than leonardo da vinci. >> i think it took him so long to paint these enforcing his deadlin deadlines. >> tyler and i come from the old time that meets dead lines what is it that fascinates you, they lived their lives at the humanity of sciences >> as you see in the leonardo's painting, the salvador mundy,

that's where creativity happens. if you are interested in one or two field, you may not feel the pattern of nature, the way benjamin franklin did and einste einstein he loves playing music on the violin my talks about how to achieve creativity tend to focus on the fact that it does help not to silo yourself into a single discipline >> walter, it is great to speak with you thank you for your time. >> thank you >> walter isaacson his new book is called "leonardo da vinci." >> to ylan mui we go >> reporter: an appeal of the mandate of the tax bill that's supposed to be released later on today. the senator of arkansas, the original supporter released a

statement saying he's please that had the committee accepted his proposal as part of his legislation. we have not seen the actual text of that bill earlier mitch mcconnell says he's mandate repeal to the tax reform effort could help ease the passage of tax reform leadership is now calling this a tax on the poor, that they yawat to get rid of. however, you remember there were several moderate republican senators who had a lot of heart ache over voting for the repeal of the affordable care act we spoke to senator mccain and to senator collins and they both said they want to take a wait and see approach to this guys, they weren't a hard no just yet back over to you. >> all right, ylan, thank you very much. meantime, roku shares have doubled in one week but the stock is down big today. a lot of people are trading it what's next for roku we're going to find out on "trading nation" next.

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probably the most talked about stock the last couple of days, roku, seeing a major reversal today now the stock surging earlier in the session, then fell over 10% on the back of a downgrade

get this, r the stock is still double in the past week, alone let's trade it trading nation team. ari wall with oppenheimer, jina sanchez. ari, i know we talked before, there's not a lot -- there's not much enough history in the stock to make an effective chart i know you're a technician we'll forget that. i know oppenheimer has done fundamental work on rok irk. what's the view? >> yeah, that's right. no view based on the trend not enough history here, but our analyst, jason helstein downgraded the stock midday to an underperform rating he's got a $28 price target on it i would say that level does line up with the stock's post-ipo high on september 29th very often see prior resistance become support on the way back down so i guess from that, you know, very short-term basis, there is some technical significance at that level as well >> but, again, nothing in the charts, and how much time, generally, ari, very quickly,

would you need to establish a chart pattern that you could analyze? >> for me, i believe in momentum, brian, and brian, there's momentum in the 12-month time horizon so personally i'd like to see at least a year of performance for it to start to pop up in some of our momentum screens. >> okay. good stuff jina sanchez, view on roku i mean, a hot stock, widely traded. >> well, there's no question that roku is on to something, in its bid to be the next smart tv software platform. however, obviously, the stock got off to a roaring start, and it ran well ahead of itself. i think one of the reasons that a lot of analysts are taking a hard look at roku is that not only has it done well, it's delivered, but its liabilities on its balance sheet are growing quite fast as well you have to pay attention to the total company right now, so we're still so early in the game of whether or not this company is going to be successful. watching a company grow massively on the liability side meaning they're sort of, you know, piling up cash to look

good for their earnings report but not necessarily paying their liabilities. that's a question you have to look at. >> yeah, very early, very early times for roku not as a company, but as a stock, certainly, gina, ari, thank you both very much for more trading nation, go to tradingnation.cnbc.com "check please" is next. now the latest from tradingnation.cnbc.com and word from our sponsor >> traders shouldn't let their politics affect their trading. instead, look to the current price trend and build an exit strategy based on where, and when, the present conditions may change this will help keep your biases bay as the markets often react differently than we might expect

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>> and i'm watching shares of apple in today's session, really pressuring the hnasdaq here, one of the leading to the downside coming out with a note, cutting its estimates for the iphone x in the current quarter, fiscal quarter one, that is, essentially because they can't get enough 3-d sensor parts in order to make it meet those estimates. so that's a pressure >> mine is kind of churning the rumor mill so it is just rumor lot of talk at the conference yesterday and otherwise maybe a lot of the selling we're seeing in ge, gold down 2%, maybe saudis raising some money to funnel back into their own country. again, just talk it's out there. >> a big bill at that ritz-carlton, by the way. >> especially if they order room

service. >> my item is i'm not going to be here tomorrow i'm going to be out at chicago at the schwab impact conference. we'll have lots of key interviews out there including with the financial advisers who manage so much of america's money. our good friend, brian sullivan, leaves tomorrow for ireland to accept an award. >> congratulations. >> i'll be here tomorrow thursday. >> have fun. >> thanks for watching "power. >> "closing bell" is next. we disappointed people with some tough news yesterday. i recognize that it's, as i said yesterday, show me time. >> general electric ceo says it's show me time and the stock is sinking yet again today now it's down 12% this week, and it's only tuesday. welcome to the "closing bell," everybody, i'm kelly evans at the new york stock exchange. >> i'm bill griffeth we're going to look at whether q ge's new